MERA has completed a £6.1m equity release refinance secured against a fully let serviced office near Chancery Lane, London, releasing funds for the client to exchange on a new commercial acquisition.
The approximately 10,000 sq ft building, let across sixteen individual office suites, refinanced existing debt held with Bank of London and The Middle East. Structured as a 24-month facility at 55% LTV, with interest part-serviced and part-accrued monthly, the deal reflects MERA’s focus on income-producing, operationally proven assets.
The new acquisition, a refurbishment project purchased from a large overseas investor, carries a deferred completion of nine months. Rather than extending its existing facility, the client sought a lender able to support the refurbishment once the asset completes, and one it had worked with before.
MERA has backed the client on previous transactions, and the deal continues that relationship into its next acquisition phase. Associate director Leo del Rosso led the transaction for MERA, working alongside mezzanine partner Martley Capital.
“This was about releasing the funds our client needed to move on to their next opportunity, without getting tied up in a straight refinance,” said del Rosso (pictured).
“Structuring it alongside Martley Capital gave them the flexibility to exchange on the new acquisition now, and the certainty of a lender who can support the refurbishment once it completes.
“We’ve backed this client before, and that history mattered here. They wanted a lender who understood the plan for the new asset, not just the numbers on this one, and that’s exactly the kind of relationship we want to keep building with clients we’ve already worked with.”
Tom Tunley, director of debt capital markets at Martley Capital, noted that the joined-up approach was key to the transaction’s success.
“We were pleased to support this transaction alongside MERA, structuring mezzanine finance that gave the client the certainty to move quickly on their next acquisition,” he said. “It’s exactly the kind of deal where a joined-up capital stack makes the difference, and we look forward to seeing the refurbishment project progress.”
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